The Hindu Business Line : Weak trend to persist

AS anticipated, the market sentiment turned bearish last week. After moving to the target zone of 1660-1670, the index turned bearish and closed at 1598.2.

The near-term outlook remains weak and the Nifty is likely to drop to 1560-1570 range in the near term. The Sensex could decline to the 4900-4950 range.

ONGC (Rs 691.1): A bearish trend prevailed as anticipated last week. The near-term trend remains weak and a drop to Rs 660-Rs 670 range appears likely. A break below Rs 625 could impart greater momentum to the downtrend.

Those who have entered at lower levels may hold with a stop loss at Rs 625. Investors, who are uncomfortable with this stop loss, could sell a portion of the holding at market rate and may consider re-entry on a move past Rs 725.

HLL (Rs 110.5): The price movement has been consistent with the views expressed in earlier weeks. The stock appears on course to move to the projected target range of Rs 102-Rs 105 range. Taking into account the weak outlook, it would be safer to reduce exposures. Buying may be considered on evidence of support at Rs 100-Rs 102 range. There is no reason now to take exposures now; shareholders can look for opportunities to reduce exposure.

Infosys (Rs 1,480): The price movement was in line with expectations. The stock turned weak after a firm trend on Monday. The near-term trend appears weak. A drop below Rs 1,460 would have bearish implications and could result in a decline to Rs 1,375-Rs 1,400 range. The stock faces resistance at Rs 1,536-Rs 1,540.

There is a possibility of a slide to Rs 1,250-Rs 1,275 range in the medium term. A move past Rs 1,570 would negate the negative outlook.

Tata Motors (Rs 400.8): As anticipated, a bearish trend prevailed last week and the stock dropped below the projected target of Rs 410.

The breach of the Rs 410-level is a negative trigger and could push the stock to Rs 375-Rs 380 level. Remain invested with a stop loss at Rs 395 and use price rise to reduce exposures. Buying may be avoided. Evidence of support around Rs 370-Rs 375 range may be used to take long positions in small lots, with a close stop loss in place.

Reliance Inds (Rs 476.8): The stock ruled weak and also dropped to the target zone of Rs 465-Rs 470 range that was mentioned last week. After recording a low of Rs 471.5 on Thursday, the stock recovered ground on Friday. The near-term trend remains weak and a drop to Rs 455-Rs 460 range appears likely. Remain invested with a stop loss at Rs 470. Evidence of support around the Rs 450-Rs 455 range may be used to take long positions in small lots.

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